Deal Signed with Rockwell Collins

23 August 2002

Star Alliance, the worldå‘s leading airline alliance, has signed an agreement with Rockwell Collins, (NYSE: COL) a global leader in aviation electronics and communications, to establish a new strategic sourcing relationship. The agreement will provide Star Alliance member airlines the benefits of common procurement requirements while positioning Rockwell Collins for increased opportunities.

The agreement, the first of its kind between an airline alliance and an aviation electronics supplier, represents a new way for suppliers to work with airlines, while presenting substantial cost savings opportunities for the Star Alliance member carriers.

Initially, Star Alliance and its member airlines will work together with Rockwell Collins to evaluate and define requirements for aviation electronics products and support services, and determine electronic needs and cockpit configurations for current and future aircraft. One area already being looked into by the parties as having a potential for consolidated purchase is new technology flight deck equipment to replace CRT-based instruments in wide-body aircraft.

“Our member airlines now have an opportunity to work with a key supplier on a new level,” said Jaan Albrecht, CEO, Star Alliance. “With Rockwell Collins, we will find ways to reduce our member carriers’ total cost of ownership on existing aviation electronics and support services, and explore new technologies to improve our overall operational efficiency and provide new and better services to our customers.”

“We expect to be able to realize substantial savings for the airlines as a result of this agreement, which is the first of its kind between an airline alliance and Rockwell Collins,” Albrecht said. “Rockwell Collins has demonstrated a solid commitment to help Star Alliance carriers achieve greater value for their procurement dollars.”

ADVERTISEMENT

“Under the agreement, Rockwell Collins will create standardized system solutions and procurement requirements for member airlines that will streamline the purchasing process,” said Bob Chiusano, executive vice president and COO, Rockwell Collins Commercial Systems. “As part of this effort, Rockwell Collins and Star Alliance will identify and pursue mutually beneficial near-term and long-term opportunities.”

Bruce MacCoubrey, vice president - strategic services, Air Canada, and chairman of the Star Alliance Purchasing Steering Committee, added that “as member airlines of Star Alliance, we can now rely on Star Alliance staff to be working in concert with member airlines and key suppliers to derive maximum value from our vendor relationships. I am pleased to say that Rockwell Collins has been extremely proactive in helping us to achieve this goal.”

Rockwell Collins provides design, production and support of aviation electronics and communications for government and commercial customers worldwide. Additional information is available at www.rockwellcollins.com.